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What Is Rocket Dollar? The Benefits Of Rocket Dollar


Rocket Dollar offers investment choices that go beyond the usual stock and ETF options. By using a self-directed Rocket Dollar account, you can invest in a number of non-traditional investments.

For those interested in alternative assets and considering a solo 401(k) plan or a self-directed IRA, Rocket Dollar is worth exploring. This platform provides a pathway to invest in non-traditional assets like cryptocurrencies, private equity, precious metals, real estate, and peer-to-peer loans.

Rocket Dollar’s appeal lies in its potential to diversify your investment portfolio. Even if your workplace offers a retirement plan, Rocket Dollar allows you to expand your investment horizons through non-traditional assets. In this Rocket Dollar review, we will look at the versatility of Rocket Dollar as we answer the question: What is Rocket Dollar?

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What is Rocket Dollar?

Rocket Dollar, a relatively new entrant to the investment platform scene, was founded in 2018 with a clear mission: to offer investors the means to broaden their retirement investment horizons beyond the constraints of traditional brokerage accounts.

This platform distinguishes itself by providing both Individual Retirement Accounts (IRAs) and Solo 401(k) plans, allowing investors to tap into a wider spectrum of financial opportunities. One of Rocket Dollar’s unique features is its innovative approach to structuring investment accounts.

When you open an account with Rocket Dollar, it establishes your investment entity as a company. In specific states, this includes the option to establish a Limited Liability Company (LLC) for your IRA, granting it a distinct identity to make investment decisions on your behalf.

Types of Accounts Offered by Rocket Dollar

The platform opens up a world of possibilities, enabling investors to explore various account types and investment avenues, including real estate, alternative assets, and more.

Investing in Traditional and Non-Traditional Assets

One of the primary attractions of Rocket Dollar is its ability to accommodate a wide spectrum of investment opportunities. Unlike traditional IRAs and 401(k) accounts managed by investment teams, Rocket Dollar provides investors with the freedom to venture beyond the confines of typical asset choices.

While common options like traditional stocks, certificates of deposit, real estate, or mutual funds remain valid choices for some, Rocket Dollar appeals to more ambitious investors seeking broader portfolio diversity.

For those intrigued by the idea of merging traditional and alternative assets, Rocket Dollar presents an intriguing option. While the platform doesn’t overtly emphasize traditional investments for retirement funds, it does provide an avenue. Investors can create a brokerage account using their Rocket Dollar IRA or Solo 401(k), allowing them to invest in conventional assets through their LLC. This process involves utilizing the LLC’s Employer Identification Number (EIN) instead of the investor’s social security number.

To navigate this, investors can choose between a business trading account for self-directed LLCs or a trust trading account for Rocket Dollar Solo 401(k) trusts. However, it’s important to note that certain limitations apply, like the inability to have a margin account or short stocks. Despite these restrictions, trading options such as puts and calls are still viable within the framework.

Self-Directed Retirement Investing

Rocket Dollar takes self-directed retirement investing to a new level, placing control firmly in the hands of investors. Unlike conventional brokers that offer equity and mutual fund choices, Rocket Dollar’s platform is remarkably versatile. Investors can exercise their autonomy by investing in a wide array of assets, including unconventional choices such as owning livestock or venturing into other alternative investment classes.

Investing in Alternative Assets Through Rocket Dollar

Among the wide range of investment opportunities available through Rocket Dollar are:

Real Estate Investors can delve into the world of real estate, an evergreen choice appreciated for its potential to generate steady income and long-term appreciation. This alternative asset class encompasses a variety of options, from direct property ownership to real estate investment trusts (REITs).
Metals Investors looking for stability and tangible assets can consider precious metals like gold, silver, and other commodities. These metals have historically served as a hedge against economic uncertainties.
Cryptocurrency For those intrigued by the digital revolution, Rocket Dollar provides access to the world of cryptocurrencies. This rapidly evolving market offers opportunities for substantial gains for investors with the right risk appetite.
Equity Crowdfunding Investors can participate in startups and small businesses through equity crowdfunding platforms, contributing to the growth of innovative ventures and potentially reaping substantial rewards.
Private Equity Lending Investors can engage in private equity lending, providing funding to businesses and startups seeking capital. This avenue can offer attractive returns for those comfortable with higher risk profiles.
Peer-to-Peer Lending Rocket Dollar facilitates peer-to-peer lending, enabling investors to directly lend money to individuals or businesses in exchange for interest payments, potentially yielding competitive returns.
Startup Lending Investors interested in supporting emerging startups can participate in startup lending, contributing to the growth of innovative companies and potentially sharing in their success.
Conventional Lending Conventional lending opportunities allow investors to provide loans to businesses or individuals, generating interest income and potentially fostering mutually beneficial financial relationships.

Benefits of Using Rocket Dollar

Here’s a glimpse into why embracing these unconventional assets might be a smart move for your investment journey:

Diversification: Rocket Dollar’s array of alternative investments, spanning real estate, private equity, cryptocurrencies, and more, brings an element of diversification that can enhance your portfolio’s resilience. These assets often exhibit different behaviors than traditional stocks and bonds, aiding in risk spreading and potentially offsetting losses during market turbulence.

Potential for High Returns: Certain alternative investments, such as private equity and venture capital, can potentially yield significant returns that outpace traditional markets. Despite the associated higher risk, the allure of substantial growth makes them an enticing inclusion in your retirement portfolio.

Hedge Against Inflation: Assets like real estate and commodities, available through Rocket Dollar, act as an effective hedge against inflation. When inflation rates surge, these investments often appreciate, safeguarding the purchasing power of your retirement funds.

Reduced Correlation to Traditional Markets: Rocket Dollar’s alternative investments often demonstrate lower correlation with conventional markets. In times of lackluster stock or bond performance, these alternative assets might thrive, providing a cushion for your overall portfolio.

Access to New Opportunities: Rocket Dollar opens the doors to burgeoning trends and industries. By investing in assets like cryptocurrencies or certain private equities, you can gain exposure to cutting-edge technologies and innovative business models.

Increased Control: For experienced investors, Rocket Dollar’s alternative investments offer heightened portfolio control. Your expertise in specific markets can potentially boost returns by capitalizing on market knowledge.

While the allure of these benefits is compelling, it’s vital to acknowledge that alternative investments aren’t a one-size-fits-all solution. Their complexity, risk profile, and sometimes lower liquidity compared to traditional assets mean they are best suited for informed and sophisticated investors.

Ease of Setup and Investment: Rocket Dollar simplifies the establishment of self-directed IRAs or Solo 401(k)s, making the process hassle-free. This platform’s expedited setup option is particularly advantageous for those requiring rapid access to a self-directed retirement account.

Investment in IRA Alternatives: Rocket Dollar’s platform facilitates investment in a wide range of alternative assets within the framework of an IRA, expanding your investment horizons beyond the conventional.

Final Thoughts

Experienced investors will find Rocket Dollar’s offerings appealing, as they can leverage their market expertise to curate a truly personalized and diversified portfolio. The ability to invest in a variety of alternative assets, from rental property to cryptocurrencies, adds an exciting layer of potential to retirement strategies.

As always, the decision to utilize self-directed accounts and explore alternative investments should be made after careful consideration of personal financial goals, risk tolerance, and the long-term horizon.

If you’re intrigued by the prospect of taking charge of your retirement savings and exploring diverse investment opportunities,  Rocket Dollar could be your path to financial empowerment. Click here to get started today.

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The post What Is Rocket Dollar? The Benefits Of Rocket Dollar appeared first on Modest Money.

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